What is 'crash for cash'?

'Crash for cash' is a scam that involves making insurers pay out on fraudulent car accident claims. These criminals 'stage' a crash and make an exaggerated claim.

 

What is the cost of 'crash for cash' scams to the UK driver?

The cost of the scams surpasses £340m each year in Britain, according to the Insurance Fraud Bureau.

Unfortunately these costs increase everyone’s premium.

'Crash for cash' does not merely add a pound or two to your premium – the Association of British Insurers says it adds about £50 to each policyholder’s premium.

Authorities say profits from these scams fund other crimes such as people trafficking and drug dealing.

What are the hallmarks of a 'crash for cash' scam?

‘Crash for cash’ criminals target motorists who look like they are fully insured, but who are less likely to create a problem. The elderly and mothers with children on board are common targets.

 

'Crash for cash' scenarios

You may be driving along and the car in front slams on their brakes for no apparent reason, making you crash into their rear. You might also experience a car 'flashing' you to let you out of a junction, only to find the car crashes into you deliberately – thus easily passing the blame on to you, the innocent party.

The scammer will say the incident is your fault and give you their insurance details. In many instances they will already have this information written down.

 

Fraudulent claim

Sometime later your insurance provider will write to you with an exaggerated list of costs, such as whiplash, car hire and recovery fees.

 

How to avoid being a victim of a 'crash for cash' scam?

Look out for erratic drivers and ensure you leave plenty of braking distance between you and the car in front.

Possible scam drivers may pay an inordinate amount of attention to the vehicle behind them – which could mean they intend to cause a crash.

 

The not-so-polite ‘flash’

While 'flashing' someone to let them out of a junction may seem polite, it could be the sign of a 'crash for cash' scammer.

Rely on your own judgement as to whether it is safe to pull out or not.

Also remember that even if a car is indicating to turn, it may not follow through; wait until they begin turning.

Some fraudsters also disconnect their brake lights to facilitate their 'crash for cash' scheme.

 

What to do if you think you're being scammed?

If you encounter an incident you think is suspicious:

  • DO NOT admit liability
  • Don’t rile the other driver by voicing your suspicions
  • If possible, discreetly take photos of the scene
  • Note the details of the event, as well as a description of the other motorist
  • Say you're going to call the police. In many cases the scammer will back off
  • Try to find an independent witness – but remember that gangs can 'plant' witnesses to support their fraudulent schemes
  • Tell your insurer straight away and explain you suspect a scam
  • Call the Insurance Fraud Bureau’s Cheatline on 0800 422 0421